Are the statements true or false. please correct my ansers and justifySuppose that at the equilibrium price of $50, the equilibrium quantity is 400 units and consumer surplus is $8,000. If the equilibrium price falls to $40 and the equilibrium quantity increased to 450 units then consumer surplus increases by $4,500. FALSEIf the existing market price is more than equilibrium, then total surplus would increase if the price decreased and moved to its market equilibrium. TRUEA result of welfare economics is that the price of a product is considered to be the best price because it maximizes total surplus. FALSESuppose that the equilibrium wage in the labor market is $8.00 per hour of labor. If a law increased the minimum wage from $7.25 to $10.00 per hour of labor, any possible increase in producer surplus would be smaller than the loss of consumer surplus. TRUE

1. True It is true if the market price of the product is below the market equilibrium price and…

Answered: Are the statements true or false.…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Are the statements true or false. please correct my ansers and justify

Suppose that at the equilibrium price of $50, the equilibrium quantity is 400 units and consumer surplus is $8,000. If the equilibrium price falls to $40 and the equilibrium quantity increased to 450 units then consumer surplus increases by $4,500. FALSE

If the existing market price is more than equilibrium, then total surplus would increase if the price decreased and moved to its market equilibrium. TRUE
A result of welfare economics is that the price of a product is considered to be the best price because it maximizes total surplus. FALSE
Suppose that the equilibrium wage in the labor market is $8.00 per hour of labor. If a law increased the minimum wage from $7.25 to $10.00 per hour of labor, any possible increase in producer surplus would be smaller than the loss of consumer surplus. TRUE

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